unemplogo.jpg (50480 bytes) The Division of Unemployment Insurance serves workers who are unemployed through no fault of their own by providing temporary income maintenance during their period of unemployment and making referrals to re-employment services.

The Division also serves employers by ensuring that only those unemployed individuals meeting all eligibility criteria receive UI benefits, thereby protecting future increases in employer tax rates and the solvency of Delaware’s UI Trust Fund.

Table of Contents

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Regulation 32 Election of Exemption for Corporate Officers

Regulation 33 Deduction of Pension Benefits from Unemployment Compensation

Regulation 34 Prorating of Deductible Lump Sum Payments

Regulation 35 Disclosure of Information

Regulation 36 Reduction in WBA due to Deductible Income

Regulation 37 Employer Credit for Re-employment

Regulation 38 Joint Accounts of Employers

Regulation 39 New Employer Rate of Assessment

Regulation 40 Involuntary leaving of Work due to Illness

Regulation 32

ELECTION OF EXEMPTION OF CORPORATE OFFICERS FROM DELAWARE UNEMPLOYMENT INSURANCE COVERAGE

§ 3302(9)(A)(i)(III), Title 19, Delaware Code, Provides That The Following Shall Not Be Deemed Employment:

"When no more than four officers of a corporation request exemption from personal coverage under this Chapter (Chapter 33). Such request must be agreed to by the corporation and filed in such manner as the Department shall prescribe."

Accordingly:

Effective June 30, 1983, as long as permitted by federal and State requirements, this elected exemption shall be for the duration of the individual's tenure as an officer of the corporation. Wages earned in such employment during this exemption shall not be used in determining eligibility for benefits in any claim following a separation from any future covered employment.

Exemption, and removal from exemption when an individual is no longer an officer of the corporation, shall be effective as of the next calendar quarter following receipt of the request on forms provided by the Department. (As adopted, effective June 30, 1983)

Regulation 33

OFFSET OF UNEMPLOYMENT COMPENSATION BENEFITS BY PENSION BENEFITS

For new claims filed to establish a benefit year commencing on or after January 1985, the Department shall:

(1) Make determinations of monetary entitlement and calculate the weekly benefit amount payable to an individual in accordance with the provisions of that section of the Code as amended June 5, 1984;

(2) Reduce the weekly benefit amount payable to an individual by 50% of his prorated weekly social security benefits which are based on the previous work of such individual, in accordance with the provisions of that section of the Code as amended June 5, 1984. (As adopted, effective October 30, 1984.)

Regulation 34

PRORATION OF DEDUCTIBLE LUMP SUM PAYMENTS FOR DETERMINATION OF WEEKLY BENEFIT AMOUNT PAYABLE

When determining the benefit amount payable to an individual in any week, lump sum payments, deducted from an individual's weekly benefit amount by the Department pursuant to sections 3302(17), 3313(b), and 3313(f), Title 19, Delaware Code, shall be prorated and deducted from the individual's weekly benefit amount until said lump sum payment is exhausted.

For the purpose of this regulation, "prorated" shall mean the proportional distribution, as determined by the Department, of a lump sum payment on a weekly basis.

Regulation 35

DISCLOSURE OF INFORMATION

Pursuant to Section 3125 (4), Title 19, Delaware Code, the disclosure of information contained in its records by the Department will be authorized, upon request, in the following cases for the following purposes:

1. To any properly identified claimant for benefits or payments under an unemployment compensation or readjustment allowance law of the Federal Government or of a State or to his duly authorized representative, information which directly concerns the claimant and is reasonable necessary for the proper presentation of his claim.

2. To any officer or employee of any agency of the Federal Government or of a State government, lawfully charged with the administration of an unemployment compensation or readjustment allowance law, but only for purposes reasonably necessary for the proper administration of such law.

3. To any officer or employee of any agency of the Federal Government or of a State government, lawfully charged with the administration of a law providing for old-age assistance or other public assistance, work relief, pension, retirement or other benefit payments, but only for purposes reasonably necessary for the proper administration of such law.

4. To applicants, employers and the public, general information concerning employment opportunities, employment levels and trends, and labor supply and demand, provided such release or publication does not include information which discloses the identity of individual applicants, employers or employing establishments, except where such party agrees to said release.

5. To individuals, employers, Federal government agencies and State government agencies, information for purposes other than as specified in this Regulation if such disclosure will not impede the operation of, and is not inconsistent with the purpose of the Department, and is authorized in writing in individual cases by the Secretary of Labor.

6. Disclosure of information shall be made pursuant to 19 Delaware Code §3125(4). Officials and employees of those governmental agencies to whom such disclosure is to be made shall include, but is not limited to the following:

a. Department of Labor

b. Department of Health and Social Services

c. Department of Finance

d. Department of Justice

e. Delaware Development Office

f. Secretary of Labor of the United States

g. Internal Revenue Service

h. United States Postal Service

I. United States Veterans' Administration

j. United States Department of Justice

7. With respect to disclosure of information, all individuals or organizations to which information is disclosed under this regulation which discloses the identity of an individual or an employing unit shall be bound by the requirements of 19 Delaware Code §3125 regarding confidentiality of the information disclosed and shall be subject to the sanctions set out in that section for improper disclosure. The use of such information shall be limited to the purposes for which it was disclosed to the recipient as permitted by this regulation and shall be limited to the purposes reasonably necessary for the law administrated by such agency.

8. With respect to disclosure of information, unless the disclosure relates to the administration of unemployment law or a function of the Department imposed by state or federal law, no disclosure of information shall be made under these regulations unless arrangements have been made to reimburse the Department for the actual costs of providing the information to the recipient.

Regulation 36

REDUCTION IN WEEKLY BENEFIT AMOUNT DUE TO DEDUCTIBLE INCOME RECEIPT/ELIGIBILITY FOR purposes of reducing an individual's weekly benefit amount (WBA) pursuant to Section 3313(f), Title 19, Delaware Code:

(1) A reduction in WBA shall be made immediately for any week claimed for which an individual is receiving or has received deductible income as defined in said section.

(2) A reduction in WBA for any weak claim for which an individual is eligible to receive, but has not yet received deductible income as defined in said section, will not be made until such income is received. Upon receipt of such deductible income, a reduction in the WBA will be made and any resultant overpayment determined retroactively to appropriate weeks claimed for which unemployment benefits were previously paid.

Regulation 37

EMPLOYER CREDIT FOR REEMPLOYMENT

Pursuant to Section 3350(7), Title 19, Delaware Code, regarding an employer for whom benefit wage charges were made as a consequence of a claimant's receipt of benefits:

(1) Application for Rehire Credit

(a) An employer application for rehire credit shall be made by filing with the Department, Form UC-400 (Employer Application For Rehire Credit) with respect to each claimant who is rehired.

(b) Such application for rehire credit shall be filed by the employer after the ending date of a claimant's benefit year, but within thirty (30) days after such date.

(c) No rehire credit shall be allowed to any employer who fails to file a completed application for rehire credit within the period prescribed. An application will be considered to have been filed upon the date of receipt by the Department.

(2) Restrictions on Receiving Rehire Credit

(a) No employer's application for rehire credit relating to a claimant's claim for unemployment benefits shall be allowed if, during a claimant's benefit year, such claimant shall have received unemployment benefits with respect to each of more than to each separate periods of unemployment.

(b) No employer's application relating to a claimant's claim for partial unemployment benefits will be allowed.

(3) Credit Allowable

Rehire credit shall be determined in accordance with the following schedule:

75% credit if claimant is rehired before receiving not more than 25% of his/her maximum benefit amount (MBA).

50% credit if claimant is rehired before receiving more than 25%, but not more than 50% of his/her maximum benefit amount (MBA).

25% credit if claimant is rehired before receiving more than 50%, but not more than 75% of his/her maximum benefit amount (MBA).

Regulation 38

JOINT ACCOUNTS OF EMPLOYERS

Section 3352, Title 19, Delaware Code regarding Joint Accounts of Employers, provides that the Department may prescribe regulations for the establishment, maintenance and dissolution of joint accounts by two or more employers subject to assessments under this Chapter.

Accordingly, the Department prescribes:

(1) Establishment

(a) A joint account will be established upon application by two or more employers, and it is proven to the satisfaction of the Department that the employing units have substantially the same ownership involving common or majority control of equity, however evidenced.

An application for a joint account must be made on Form UC-1 or by separate letter indicating the entities, officers, stockholders, and percentages of ownership interest.

The establishment of a joint account will be effective for the calendar quarter in which such application is received. The Department may request all necessary information to make such determination; or

(b) A joint account will be established when the Department determines that a reorganization of previously subject employing units having substantially the same ownership has occurred, and such reorganization may adversely affect the solvency of the Unemployment Compensation Fund. Such joint account will be effective within the calendar quarter that reorganization occurs.

(2) Maintenance

Upon establishment of a joint account involving two (2) or more employers, regardless of whether such employing units were or were not previously subject to this Chapter, their individual accounts will be merged and maintained as if they constituted a single employer's account for experience rating purposes. However, each employing unit will continue to file reports and pay contributions under its individual account number.

(3) Dissolution

Once established, a joint account cannot be dissolved so long as the individual employing units remain under substantially the same ownership.

Whenever any employing unit included in a joint account is purchased or otherwise acquired by outside interests, such employing unit will be given a new employer account number and assigned a contribution rate in accordance with Section 3348 of this Chapter.

Regulation 39

NEW EMPLOYER RATE OF ASSESSMENT

Section 3348, Title 19, Delaware Code, regarding Average employer assessment rate; average industry assessment rate; average construction industry assessment rate; new employer rate; and standard rate of assessment, provides:

(1) For any employer, excluding those employers in SIC categories 15, 16, and 17, who first becomes subject to this Chapter on or after July 1, 1986, the new employer rate shall be the average employer assessment rate".

(2) "For any employer in SIC categories 15, 16, and 17 who first becomes subject to this Chapter on or after July 1, 1986, the new employer rate shall be the average industry assessment rate in that employer's particular SIC category (carried to 4 places) or the average construction industry assessment rate, whichever is the greater".

With regard to Section 3348, an employing unit that alters its legal status in any way, such as changing from a sole proprietorship or a partnership to a corporation, or from one corporate entity to another as a result of re-incorporation, merger, or a transfer of employees between such entities or whenever an employing unit that otherwise changes its trade name or business identity while remaining under substantially the same ownership will not be considered to have become first subject to Chapter 31, Delaware Unemployment Compensation Code upon such reorganization and shall not be entitled to a new employer rate of assessment. Such an employer will be considered to be a reorganized employer, not a new employer.

A reorganized employer shall retain the contribution rate and be liable for all contributions, interest and penalties owed by the employing unit before the reorganization.

However, if such reorganization shall involve the contribution rates of two (2) or more employing units, having substantially the same ownership, regardless of whether such employing units were or were not previously subject to this Chapter, the contribution rate for the reorganized employer shall be determined in accordance with Section 3352, Title 19, Delaware Code and Regulation No. 38(1)(b), (2), and (3).

The Secretary of Labor may waive the provisions of this Regulation as they apply to a reorganized employer if said employer, prior to reorganization, is determined by the Department not to be delinquent with the regard to the payment of unemployment assessments and the application of such a regulation would be inconsistent with the economic development policies of the State of Delaware.

Regulation 40

INVOLUNTARY LEAVING OF WORK DUE TO ILLNESS Section 3315(l), Title 19, Delaware Code, in part, provides that ....... if an individual has left his work involuntarily because of illness, no disqualification shall prevail after he becomes able to work and available for work and meets all other requirements under this title, but the Department shall require a doctor's certificate to establish such availability."

With regard to Section 3315(1), an individual who elects a layoff in lieu of sickness and accident benefits provided under an employer benefit program or who elects a layoff in lieu of exercising the right to bump an employee with less seniority who is performing work that said individual can perform within his medical restrictions will not be considered to be an individual leaving work involuntarily because of illness, but shall be considered to have left his work voluntarily without good cause attributable to such work and shall be subject to the disqualification provision of this Section.